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Democrats Prepared to Cripple Private Insurance

Wednesday, October 14th, 2009

According to a report from Politico, Democrats have begun using the health care reform debate as a means to open fire on insurance companies, planning to remove a key provision that offers federal protection of their industry. Their efforts have been led by Sen. Chuck Schumer (D-NY) who “called for an amendment to the health care reform bill that would remove the long-standing antitrust exemption for insurers, echoing a push by other Democrats to crack down on the industry.”

“The health insurance’s antitrust exemption is one of the worst accidents of American history,” Schumer said. “It deserves a lot of the blame for the huge rise in premiums that has made health insurance so unaffordable. It is time to end this special status and bring true competition to the health insurance industry.”

Sen. Patrick Leahy, chairman of the Judiciary Committee, introduced a bill last month to remove the anti-trust exemption and convened a hearing Wednesday, where Schumer called for eliminating the exemption as part of the health bill working its way through Congress.

Schumer’s push comes on the heels of a controversial industry-sponsored report released over the weekend that makes the case that insurance premiums will go up by as much as $4,000 per family by 2019 if the Senate Finance Committee legislation is signed into law. The release of that report by the industry group America’s Health Insurance Plans sparked angry blowback from Democrats in both chambers.

Senate Majority Leader Harry Reid (D-NV) believes that this sort of punishment is “something that should have been done a long time ago.” 

“There isn’t anything we could do to satisfy them in this health care bill. Nothing,” Reid said. “They are so anti-competitive. Why? Because they make more money than any other business in America today. . . .What a sweet deal they have.”

Sen. Schumer is not alone in his fight to cripple the private insurance industry. According to the piece, top Democratic lawmakers in the House met in Speaker Nancy Pelosi’s office to discuss their maneuvering to garner support in their chamber of Congress to follow suit.

Insurance companies are not surprised at the move by Democrats in Congress to stifle their industry, recognizing that top Democratic lawmakers are forced to downplay recent discoveries of all the shortcomings in their push to overhaul the health care industry.

Health insurance officials dismissed the effort as a “political ploy.”

“Health insurance is one of the most regulated industries in America at both the federal and state level,” said Robert Zirkelbach, a spokesman for America’s Health Insurance Plans. “McCarran-Ferguson has nothing to do with competition in the health insurance market. The focus on this issue is a political ploy designed to distract attention away from the real issue of rising health care costs.”

Still, the push is likely to gather momentum as Democrats try to find a way to lash back at the insurance industry — whose report was viewed as a last-minute attempt to scuttle health care reform just days before Tuesday’s critical Senate Finance Committee vote. The legislation there was approved 14-9, with Republican Sen. Olympia Snowe of Maine voting yes and giving reform efforts a boost.

Leahy’s bill would repeal the exemption established in the 1945 McCarran-Ferguson Act for any companies engaged in price fixing or bid rigging — which are both already illegal. He has introduced similar legislation in other Congresses, including a broader repeal of the underlying law. Reid is a co-sponsor of the current bill.

In the House, where Democratic leaders are exploring the issue further, Judiciary Committee Chairman John Conyers (D-Mich.) has introduced legislation that would essentially end McCarran-Ferguson and give the federal government the right to regulate insurers at the national level.

 

Certainly, the attempt to further burden the insurance industry with excessive regulation will be fought by opponents of President Obama’s health care reform ambitions, and they will remind activists that any attempt to dismantle the private sector of medicine would inevitably decrease the quality of and access to health care for all Americans.

AP: Labor Unions Ready to Fire on Baucus Bill

Tuesday, October 13th, 2009

The Associated Press confirms what healthcarehorserace.com reported Wednesday: top unions are ready to launch an attack on Sen. Baucus (D-MT) and his health care reform bill that passed out of the Senate Committee on Finance today:

WASHINGTON — A top labor lobbyist says about 30 unions will run a full-page ad in newspapers Wednesday announcing their opposition to the Senate Finance Committee’s health overhaul bill.

 

The ad says that unless the bill brought to the Senate floor makes substantial progress to address the concerns of working men and women, unions will oppose it.

 

The legislative director of the American Federation of State, County and Municipal Employees, Chuck Loveless, says unions are unhappy that the legislation lacks a publicly run insurance plan and would tax insurers that provide expensive coverage.


Sponsors included the AFL-CIO and the Communications Workers of America. The ad will run in The Washington Post, USA Today and Capitol Hill newspapers.

BREAKING: BAUCUS BILL UPDATES

Tuesday, October 13th, 2009

UPDATE 3:03 P.M. EASTERN- VOTE TALLIES:

Republican
CHUCK GRASSLEY -no
ORRIN G. HATCH -no
OLYMPIA J. SNOWE -yes
JON KYL -no
JIM BUNNING -no
MIKE CRAPO -no
PAT ROBERTS -no
JOHN ENSIGN -no
MIKE ENZI -no
JOHN CORNYN -no

Democrat
MAX BAUCUS -yes
JOHN D. ROCKEFELLER -yes
KENT CONRAD -yes
JEFF BINGAMAN -yes
JOHN F. KERRY -yes
BLANCHE L. LINCOLN -yes
RON WYDEN -yes
CHARLES E. SCHUMER -yes
DEBBIE STABENOW -yes
MARIA CANTWELL -yes
BILL NELSON -yes
ROBERT MENENDEZ -yes
THOMAS CARPER -yes

Agreed to (14-9)

The Mark is ordered reported.

UPDATE: 1:03 P.M. EASTERN- SEN. OLYMPIA SNOWE (R-ME) WILL VOTE “YES” ON BAUCUS BILL.

In what Sen. Max Baucus (D-MT), chairman of Senate Committee on Finance, calls an opportunity to “make history” by satisfying President Barack Obama’s top domestic priority, his bill will be up for vote around noon Tuesday to determine the future of the health care reform agenda of the White House and Congressional progressives.

Stay tuned to healthcarehorserace.com for the latest breaking news as the votes are tallied and the White House, Congress and the public respond.

HuffPo: Baucus to Blame for Health Care Overhaul Failings

Monday, October 12th, 2009

A recent blog entry at the Huffington Post highlights the progressives’ criticism of Senate Committee on Finance Chairman Max Baucus (D-MT) for the failings of the liberal health care reform agenda.

Blogger Chris Weigant complains that Sen. Baucus is responsible as being “almost as obstructionist as the Republicans in getting to the point we are at now. Meaning he is responsible for the dwindling amount of time we have left to get healthcare reform passed this year.” Indeed, this has been a common grievance of the far Left: leading Democratic lawmakers are to blame for not utilizing a hefty majority to make their dreams of a single-payer, universal health care system a reality.

Weigant worries that there is simply not enough time left in the legislative calendar to ensure the passage of an adequate, sweeping government plan that would overhaul the health care industry:

There are only two and a half months left in Congress’ legislative year. In this short period of time, Congress usually takes enormous chunks of time off for Thanksgiving and Christmas. So there just aren’t that many weeks left to pull this thing together. Reid, to his credit, has already cancelled a Senate week off for Columbus Day, but cancelling Thanksgiving and Christmas is a whole different ball of wax.

Weigant’s assessment is correct. There are plenty of procedural speed bumps that would mean that even if the bill is deemed favorable by a majority of Congress, an unlikely fate at best,  the unavoidable legislative route would take plenty long enough and could disrupt Leftists’ ambitions for a speedy takeover.

The article isn’t shy about pointing the finger at Sen. Baucus, ultimately blaming the Finance Committee chair for what seems to be a likely doom for the hopes of progressives everywhere, thanks in part, Weigant argues, for his attempts at bipartisanship:

But whatever the chances are, and however it is handled by the congressional leadership, the point is we just wasted two and a half months. And by “we,” I mean “Senator Max Baucus.” Before August happened, the talk was all of “bipartisanship” (ah, those naive days of early summer…) and the “Gang of Six,” who were going to hammer out a bill that lots of Republicans would vote for. By the end of August, the Republicans were all but smirking into their sleeves on national television saying: “We were never going to vote for anything that would help Obama politically, and we just burned up a month proving that to the Democrats.”

But then, even after we got to that point, we then sat through another month and a half of delay. And that delay can be laid at the feet of Max Baucus. Is the bill the Finance Committee going to vote on tomorrow substantially different than what they had at the beginning of September? No, it is not. Is it substantially better? No, it is not. Is it going to win over any Republican votes (other than, perhaps, Olympia Snowe)? No, it is not. Were those six weeks wasted? Yes, they were.

Which gave time for the healthcare industry to mobilize against Baucus’ bill. Meaning Baucus is largely responsible for the attack coming now.

And while the far Left is busy demonizing Sen. Baucus, it’s pretty certain that the majority of American people are exhaling a large sigh of relief, thankful that the bill, as bad as it is now, is at least somewhat better than the deepest held hopes of progressives: a complete and utter destruction of the private sector to level the playing field by making health care equally as awful for everyone.

msbye6vhiq

Republican Governors Condemn Baucuscare

Monday, October 12th, 2009

Likely anticipating skyrocketed state liabilities, 14 out of the 28 Republican governors in the U.S. have sent letters to their respective Congressional delegations urging them to vote against the health care reform proposals of Sen. Max Baucus (D-MT).

According to an article from The Hill, the efforts of these GOP governors have been complemented by the active assistance of Republican lawmakers on Capitol Hill.

Though Barbour coordinated the letter-writing effort among the governors, it is part of a larger initiative launched by House Minority Leader John Boehner (R-Ohio) earlier this year to increase the outreach among state heads and congressional leaders. Sources say Senate Minority Leader Mitch McConnell (R-Ky.) is also playing a leading role on this issue. 

Those Republican doctors who have not committed to writing critical letters are: “Charlie Crist (Fla.), Jodi Rell (Conn.), Tim Pawlenty (Minn.), Bob Riley (Ala.), Bobby Jindal (La.), John Hoeven (N.D.) and Jim Douglas (Vt.). Of these, Crist, Douglas and Rell were strong proponents of the stimulus package that was rejected by all but three Republicans in Congress.”

The main concern regarding Baucus care is the unprecedented financial burden it will place in the form of liabilities of the states:

GOP Nebraska Gov. Dave Heineman told his delegation, including Sen. Ben Nelson (D-Neb.), that that “this new unfunded federal Medicaid mandate could result in the higher taxes on Nebraskans or in cutting state aid to Nebraska’s school districts as well as state appropriations to our universities, state colleges and community colleges.” 

Nelson, a centrist, has refused to commit to voting with Democrats on procedural roll calls on healthcare reform legislation. If Nelson sided with Republicans, he would significantly increase the chances of a successful GOP filibuster.

Other Republican governors, including Haley Barbour (Miss.), Mitch Daniels (Ind.) and Rick Perry (Texas), echoed Heineman in letters they have recently sent to Capitol Hill. Governors from Hawaii, Arizona, Alaska, California, Rhode Island, South Carolina and others plan to follow suit before week’s end. 

Barbour, chairman of the Republican Governors Association (RGA), was the first to pen a “letter of concern” to lawmakers from his state. And it provided a template for others to follow.

While Democrats in the Senate claim that this program will be funded by the federal government and run by the states, many Republican governors are skeptical. 

“The current proposals, both in the House and Senate, will expand the Medicaid program at additional costs paid not by the federal government, but passed down to the states,” Barbour wrote earlier this month.

Republicans are touting an editorial in Monday’s Wall Street Journal titled, “Max’s Mad Mandate.” The op-ed called Baucus’s bill “the mother — and father and crazy uncle — of unfunded mandates.”

GOP governors are not the only ones who have voiced their criticisms: 

Democratic governors have raised concerns about the House healthcare bill, but some of them backtracked this summer. The Democratic governors, including Brian Schweitzer (Mont.) and Martin O’Malley (Md.), accused staff at the National Governors Association of giving them false information after a meeting with Health and Human Services Secretary Kathleen Sebelius, according to a FoxNews.com report.

Senate Democrats Shield Constituents from Tax Burdens of Health Care Reform

Friday, October 9th, 2009

According to a report from Kimberly A. Strassel of the Wall Street Journal, some Senate Democrats have supported health care reform, so long as their own constituents don’t have to pay for it:

How good is Sen. Max Baucus’s health reform bill? So good that Democrats have made sure some of the most costly provisions don’t apply to their own states.

The Senate Finance Committee is gearing up for a final vote next week, and Chairman Baucus now appears to have the Democratic votes to pass his bill. Getting this far has of course meant cutting deals, and those deals, it turns out, are illuminating. The senators are all for imposing “reform” on the nation, so long as it doesn’t disadvantage their constituents.

A central feature of the Baucus bill is the vast expansion of state Medicaid programs. This is necessary, we are told, to cover more of the nation’s uninsured. The provision has angered governors, since the federal government will cover only part of the expansion and stick fiscally strapped states with an additional $37 billion in costs. The “states, with our financial challenges right now, are not in a position to accept additional Medicaid responsibilities,” griped Democratic Ohio Gov. Ted Strickland.

Poor Mr. Strickland. If only he lived in . . . Nevada! Senate Majority Leader Harry Reid, who is worried about losing his seat next year, worked out a deal by which the federal government will pay all of his home state’s additional Medicaid expenses for the next five years. Under the majority leader’s very special formula, only three other states—Oregon, Rhode Island and Michigan—qualify for this perk, on the grounds, as Mr. Reid put it recently on the Senate floor, that they “are suffering more than most.”

Tell that to Mr. Strickland, who is still trying to figure out how to close an $850 million budget hole, in a state with near 11% unemployment. And tell it to Republican Sen. Lamar Alexander, who quipped: “I wonder how citizens in Wyoming, in California and Florida and other states will feel if they pay more taxes so that Nevadans can pay less taxes.”

To pay the bill for his version of ObamaCare, Mr. Baucus’s legislation would tax high-value insurance plans—a 40% tax on plans that cost more than $21,000 a year. Democrats argue it is reform to make those who can afford “luxury” health care chip in for those who can’t afford any at all.

That is, unless you live in a state such as New York. That state, along with some others, has many high-value plans—in part because it boasts a lot of union members with “Cadillac” plans, in part because the state has imposed so many insurance regulations that even skimpy plans are expensive. Sen. Chuck Schumer didn’t want a lot of angry overtaxed New Yorkers on his hands, so he and other similarly situated Democrats carved out a deal by which the threshold for this tax will be higher in their states. If you live in Kentucky, you get taxed at $21,000. If you live in Massachusetts you don’t get taxed until $25,000. This carve-out is at least more sweeping, applying to 17 (largely blue) states, though that’s cold comfort if you live in Louisville.

Mr. Baucus will also pay for his bill by socking it to pharmaceutical companies, on the principle that drug companies are filthy rich and should have to contribute to health care. The view is a bit different in New Jersey. The state’s Web site boasts it is the “global epicenter” of the drug industry, where “15 of the world’s 20 largest pharmaceutical companies have major facilities.” And Sen. Bob Menendez, of the Garden State, seems concerned that his home-state employers are going to struggle to both pay their federal liabilities and to continue to grow and innovate. Thus Mr. Menendez’s quiet deal for a $1 billion tax credit for companies investing in drug R&D.

The Baucus bill, we are assured by many Dems, will successfully “bend down” the health-care cost curve. Michigan Sen. Debbie Stabenow isn’t counting on it when it comes to her constituents. She and Massachusetts Sen. John Kerry included $5 billion in the bill for a reinsurance program designed to defray the medical costs of union members.

“This will help our employers, whether it’s the auto industry or whether it’s other industries, be able to lower their costs for early retirees,” said Ms. Stabenow. She is apparently unaware that this is what the broader bill is supposed to do, even without $5 billion in union slush money.

So, health-care “reform” is good, smart and necessary, so long as it isn’t fully applied to the states of the senators who are pushing it. The Democrats’ growing problem is that somebody is ultimately going to have to pay, and Mr. Reid’s bad example has given every one the same idea. “If Colorado has a fair claim on being treated the same way Nevada has been, of course we’re going to ask to have that kind of treatment,” promised Sen. Mark Udall, upon news of the Reid deal.

Most senators are saving up their special state demands for when the bill hits the Senate floor. At that point, we’ll get an even better idea of how much health-care change Democrats truly believe in.

Labor Unions Plan Advertising Assault on Baucus; Demand Employer Mandate

Thursday, October 8th, 2009

The United Auto Workers and Teamsters have partnered to publicly oppose health care legislation proposed by Sen. Max Baucus (D-MT), claiming the bill to be “deeply flawed.” They have begun to develop an advertisement that criticizes the plan of Sen. Baucus and outlines what they believe is essential to achieving true reform.

The advertisement issues three key demands:

  1. A public option.
  2. Employer mandate.
  3. Elimination of a proposed tax on high-end health plans.

Ryan Ellis, policy director at Americans for Tax Reform, offered healthcarehorserace.com a glimpse into why he believes the Teamsters and UAW have come out in favor of such a government overhaul of the health care industry and why he “wouldn’t be surprised if other unions followed suit”: 

re: 1. A public option. According to Ellis, the public option is not so much a threat to labor unions if there is an employer mandate imposed on businesses (see re: 2). So, labor unions, like the UAW and Teamsters, can appear to be in favor of earnest reform, regardless of whether it’s true or not, in order to convince Americans that their hearts are true, without being detrimental to their true intention which is…

re: 2. Employer mandate. An employer mandate would require businesses to extend health insurance benefits to all employees or face a severe penalty. According to Ellis, the public option is only acceptable if an employer mandate exists. “Unions know that if you put a public option without an employer mandate, then employers would simply send their employees to the public option,” he explains. “Employer mandates put the unions in good positions to negotiate the best deals possible.”

re: 3. Elimination of a proposed tax on high-end health plans. As it stands now, Sen. Baucus’ plan taxes “Cadillac” health plans, where those whose employer provides more than $8,000 per person or $21,000 per family of coverage annually will be taxed at 40 percent for every extra dollar. The unions oppose this, as Ellis points out, because their control over workers comes from their ability to exchange union dues for cushy health care plans. If the tax on high-end plans exists, then there is less of an incentive for employers to provide luxurious plans, making it difficult for them to negotiate and in turn, provide less incentive for workers to unionize.

Bloomberg adds:

In addition to the autoworkers and the International Brotherhood of Teamsters, the proposed ad was sent to more than 30 unions. Among them were leaders of the American Federation of State, County and Municipal Employees, the United Steel Workers, the International Brotherhood of Electrical Workers, and the National Football League Players Association.

Dispute Continues Over CBO’s Scoring of Baucuscare

Thursday, October 8th, 2009

Members of the mainstream media have claimed that the health care reform bill of Sen. Max Baucus (D-MT) would cost American taxpayers $829 billion over the next decade, but apparently that just isn’t so.

The Washington Post: “The bill would cost $829 billion over the next decade.”

The New York Times: “The budget office analyzed the bill … its newly projected cost — $829 billion over 10 years.”

The Wall Street Journal: “The latest Senate health bill will cost $829 billion over a decade.”

According to blogger Donald Marron, the number is more like $904 billion dollars. And he has the facts to prove it:

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“So let me once again implore everyone commenting on the health debate: There is a difference between the cost of the Baucus bill ($904 billion) and the cost of its provisions to expand coverage ($829 billion). It is understandable that most commentary focuses on the health insurance provisions. But we should not forget the other $75 billion in spending on other initiatives. Dollar-for-dollar they deserve as much scrutiny as the coverage expansions.”

White House Switches Strategy, Touts “Republican Support”

Wednesday, October 7th, 2009

In yet another shift in strategy, the White House has abandoned their “tough luck” attitude about the GOP and instead, has begun to tout what they believe is Republican support for their health care reform agenda.

Previously, President Obama attempted to portray himself as a “bipartisan” kind of guy, longing to craft legislation that would satisfy both parties. Then, when realizing the height of the cards stacked against him, began to accuse conservatives of not having ideas of their own and reiterated that he would push his reforms with or without them. 

Now, according to Reuters, the White House will claim that those who oppose his agenda are “isolated” from the rest of their party and the rest of the country.

 

The Obama administration has adopted a new tactic in its push for healthcare reform: touting the support of Republicans outside of Washington after failing to win any backing for overhaul plans in Congress from members of the party on Capitol Hill.

Seeking to portray opponents of the legislation as isolated from mainstream America and even from prominent members of the Republican Party, the White House on Tuesday distributed a statement from Arnold Schwarzenegger, California’s Republican governor, urging the passage of national healthcare reform.

 

President Obama substantiates his argument by rolling out the endorsement of former Wisconsin Republican governor Tommy Thompson.

 

On Monday, it sent out a statement by Tommy Thompson, a former Republican governor of Wisconsin and presidential candidate who was former President George W. Bush’s health secretary, endorsing a plan coming through the Senate Finance Committee.

“It (the plan) moves us down the path of providing affordable high-quality health care for all and expanding coverage for millions,” said Thompson’s statement, issued with Richard Gephardt, a former Democratic leader in Congress.

 

Republican leaders are not convinced, with Senate Minority Leader Mitch McConnell (R-KY) believing the so-called “bipartisan” support to be few and far between.

 

“The influx of headlines breathlessly claiming support for health care reform amongst Republicans is puzzling considering Republicans have been calling for reform for months,” said a statement from Senate Republican leader Mitch McConnell’s office.

“It is the details of the health care reform proposals before Congress that are extremely concerning for Republicans,” McConnell’s statement said.

No Republicans in Congress currently back the Finance Committee proposal to overhaul the $2.5 trillion U.S. healthcare system, or any other put forward by Democrats. It is not clear whether any could muster the support even of all 60 Senate Democrats, which is needed to ensure passage.

 

Meanwhile, free market advocacy groups like Americans for Prosperity have not let up, engaging citizen activists to remain involved in the debate. During a protest held Friday at the U.S. Capitol, 2,000 participants voiced their concerns about the President’s health care reform plans and demanded patient-centered reforms.

ACORN Faces Further Legal Woes

Wednesday, October 7th, 2009

Association of Community Organizations for Reform Now (ACORN) is facing even more legal troubles. ACORN, a longtime ally of President Obama and an outspoken proponent of his health care agenda, is now under further investigation by Louisiana’s Attorney General Buddy Caldwell for embezzlement totaling $5 million.

Although ACORN originally claimed that they had only fraudulently obtained $1 million, an internal review by the board of directors indicates otherwise, determining that “the amount allegedly embezzeled from the community organization was $5 million, well more than the amount previously reported,” according to WWL, New Orleans-based television and radio stations. The prosecutor’s new figure was reported in a subpoena he filed last week. 

This is only the latest setback faced by ACORN, who just weeks ago offered legal and tax advice to undercover reporters who pretended to seek counsel on developing a brothel for several underage immigrants. Since this discovery, in addition to reports released that prove the community organizing group owed millions of dollars in backed taxes, the group has halted its operations indefinitely. There were also accusations of voter registration fraud and intimidation by opponents during the 2008 election. 

ACORN was undoubtedly an asset to President Obama’s campaign and has remained an integral player in their grassroots mobilization of activists during the health care reform debate. The organization is led by a board that includes far Leftist John Podesta, who runs Center for American Progress, and Andrew Stern of the Service Employees International Union (SEIU). ACORN, who claims to be a nonprofit, has been the beneficiary of $58 million of taxpayer money in two decades. Congress has since voted to cut off their federal funding and many states, including Louisiana, have followed suit.